to the state's Department of Revenue, the Sales Tax Expense account is debited The bookkeeper thought that the sales tax is a selling expense." At the end of the current year, the balance in the Sales Tax Expense account is $103,400. structions Prepare the necessary correcting entries, assuming that Longfellow uses a calendar-year basis. 22-6 A partial trial balance of Dickinson Corporation is as follows on December 31, 20x0. Dr. CL $2,500 $1,500 Supplies on hand. Accrued salaries and wages .... Interest receivable..... Prepaid insurance ...... Uneamed rent...... Accrued interest payable .. 5,100 90,000 - - 15,000 Additional adjusting data: 1. A physical count of supplies on hand on December 31, 20x0, totaled $1,100. 2. Through oversight, the Accrued Salaries and Wages account was not changed during 20x0. Accrued salaries and wages on December 31, 20x0, amounted to $4,400. 3. The Interest Receivable account was also left unchanged during 20x0. Accrued interest on investments amounts to $4,350 on December 31, 20x0. 4. The unexpired portions of the insurance policies totaled $65,000 as of December 31, 20x0. 5. $24,000 was received on January 1, 2010 for the rent of a building for both 20x0 and 20x1. The entire amount was credited to rental income. 6. Depreciation for the year was erroneously recorded as $5,000 rather than the correct figure of $50,000. 7. A further review of depreciation calculations of prior years revealed that depreciation of $7,200 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. Instructions Ignore income tax considerations. (a) Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 20x0? (b) Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 20x0